Competition is good for the health care industry. Competition applies to all industries including health, improvements in methods and processes leading to costs being driven down. Competition in the health industry results to innovation which leads to better and new methods as well as approaches which spread rapidly and widely. This results to the unstructured providers to be restructured to be more competitive or risk being driven out of business. The prices which are value adjusted therefore fall leading to the expansion of the market in the health industry leading the market to be well-functioning, (Cooper, 1994).
Competition helps health systems advance in trying to counter the challenge of delivering broad access to health services while at the same time controlling costs and improving the health care costs. This is because competition is a proposed solution to address the element of the challenge elegantly. A framework by health system to use competition to promote efficient and high-quality care can be framed using the available evidence to ensure success in the health care industry. Competition can be deployed and designed to create incentives which are potent and which encourage innovation among providers to deliver high quality at a lower cost, (Greenberg, 2002).
An example of the importance of competition in the health care industry is the case of private health care in the U.S which seems not to be working. There is inefficient regulation of the market which drives prices up hence undermining quality in the power and profit search. This has resulted from deficiencies in regulation and the market forces hence customers do not get their money value according to Hillestad & Berkowitz (2004). Another instance is that poor performance is also contributed by the public and private sectors characteristic that purchasers are passive quality and price takers and providers being quality and active price makers.
As a consumer of health care, I have certain expectations when utilizing health care facilities in addition to a friendly greeting, ensuring airway, circulation and breathing, external bleeding control, and the courtesy of a sitting place. I have expectations on the pre-service depending on clinical need or country including emergency medical services. Among the expectations of a health-service is the provision of transport operation to simply take the patients from their living locations to the medical centers. The health care facilities should also be able to provide a pre-service that determines whether a patient can be treated where they lie or be taken to the facility (Hillestad & Berkowitz, 2004).
My point of service expectations when utilizing health facilities involves improvement of ED cash flow and customer experience. This is whereby after receiving treatment the patient leaves without paying the bill to receive the bill copy a few weeks later sent to the insurer who pays a portion of the bill. I would expect a short collection cycle which is less time consuming and confusing. Another point of service expectation is getting experienced health care from a network of providers and doctors. As well the health care facility should have options for HMO, PPO or POS health plans (Nah & Dawodu, 2007).
After services which are among my expectations on utilizing health services include foremost transport services after treatment which can either be taxis funded by the facility or ambulance services. The health care should also have a developed after-hospital trauma care. Among the factors that would discourage me from using a health facility in my community includes poor productivity of healthcare facility relative to other health care facilities. Another is poor coordination of pre-services, point-of-services and after-services in the healthcare facility (Ashley & Rourke, 2002).
Directional strategies are characterized by stability, retrenchment and mostly whether there is a determination for the business should grow, maintain the current activities or be reduced. Growth strategies which involve either the business growing vertically or horizontally or through diversification which is growing through conglomerate or concentric diversification. For instance, if a hospital decided to employ directional growth strategy it may choose to grow vertically by taking over previous functions provided by a distributor or supplier. This maybe inform of purchasing sterilizing equipment for surgery, or opening an out-pharmacy for patients cutting out suppliers.
Complex adaptive strategies need requirements like healthcare facilities being dynamic and nonlinear; they do not reach fixed-equilibrium points inherently hence the system behaving to be chaotic or random. Another requirement is that the facilities should be composed of independent agents with behavior based psychological, physical, or social settings rather than the system dynamics demand. Agent’s needs in adaptive strategies should have a high likelihood for the conflict of behaviors and goals, they are also self-intelligent, and self-organized.
One of the requirements for market entry strategies includes strategies to penetrate the existing market for instance using price reductions. Another requirement is improving a service or product with a focus set on the niche market which is done by being innovative in the market place. Other requirements include; targeting new geographical markets, development of new distribution channels, and choice of matching marketing strategies. Characteristics of competitive strategies include; optimal positioning, accurate pricing strategies and advertising.
The change of strategies over time is crucial to strategic management. If changes are occurring in any organization-tactical changes, strategic changes, technology, leadership changes-then there are impacts and effects on the processes and people among other areas in the organizations. It is important to implement change management methodologies accurately with skilled resources delivering as well as executing the methodologies, processes and principles. This helps to minimize those effects and impacts from having negative outcomes hence use of strategies change is important. Change of strategies leads to minimization of possible negative outcomes and ensure positive results are increased. It helps to implement actions and approaches which should be customized to fit the circumstances of the organization (Paley, 2007).
Strategic change over-time can be accomplished by using a structured approach to transition the individuals, organizations, and teams from the current state to the desired one. It involves application to situations of downsizing, growing organization, or even accomplishing addition of new technologies. It is also accomplished by letting employees understand, accept, commit to and embrace the changes in the business environment they are working with. The accomplishment of strategies makes the organization more productive, innovative and productive (Ryan & Jones, 2009).
An organization can take stake holders buy into the changes by including them in the changes by using the principle of interdependency where the effect of stakeholders is fully recognized. Explaining to the stakeholders that understanding and skillfully executing various principles of the organization and change management is a necessity to success is also another way, according to Paley (2008). The interventions can be made to focus on the improvement of the stakeholder’s initiatives within the organization such as communication, change, process and culture. Finally, harmonizing these changes with the needs of the stakeholders is crucial too.
Health care providers can define the market they wish to serve by defining the customer base they wish to serve and/or the services they wish to offer. The health markets can typically be analyzed following functions they serve including; offering health care financing, physician and nursing services, institutional services, input factors and professional education. Healthcare financing market involves diagnosis, prevention, and treatment of diseases, injury, illness, and other physical mental and physical impairments, (Piercy, 2012).
Health care providers can also the market that they wish to serve is determining the total area to be examined or the “overall area covered by the markets”. For example, for a large independent provider or a local multi-hospital system a good start is the examination of the metropolitan statistical area as a whole in where the provider is situated. It is normally not always possible for the service to pull out of the entire MSA. However, with the appropriate relationships and strategies which include affiliate staff and hospital stuff, coupled with appropriate meeting the patients within the MSA will use the services of the provider, according to Piercy (2012).
The ways of definition of the market they wish to serve by health care providers depends on the overall patient origin for the market area hospitals. The overall market should basically include represent 80% or more of the discharges from hospital within the specific area. This statistic should be achieved by including additional areas if the current one doesn’t give the percentage. The providers may even include the overall market by pulling patients from multi-state or even the national level, (Ryan & Jones, 2009).
Internal environment analysis plays an important part in the development of value adding support strategies. Internal environment analysis provides direction and serves as a basis for assessing the weakness of the organization-what the organization can do and what it cannot do. Additionally, it reveals the opportunities or the favorable conditions for the potential of the organization as well as threats or unfavorable conditions for an organization. Internal environment analysis is an important step in development of value adding strategies and should not therefore be underestimated, (Ray, 2005).
It is crucial in understanding resources, capabilities and uncovering of the potential firm weaknesses although some can be considered harmless, those which are related to specific needs should be minimized as much as possible. The role of internal analysis of the business environment is to help determine where resources are available or where they are not available so that the strengths and weaknesses can be identified. It also helps to decipher changes in the competitive environment, changes in social-cultural environment, changes in the legal environment as well as changes in the internal organization environment, cannon & tanner (2007).
Strategy formulation is vital in development of value adding support strategies because it is important in the well-being of an organization or a company. In corporate strategy formulation it helps companies or organizations to decide what line or lines of business to peruse. In the business or competitive strategy, it adds value to support strategies by setting a framework for success achievement in a particular business. Formulation of sound formulation strategies helps to facilitate several actions and desired results that would have been difficult in other ways, according to Ray (2007).
Action plans help in focusing of a company or organizations ideas and to decide the steps involved in certain dreams achievement. The important components of action plans includes; identifying objectives, setting objectives which are measurable and achievable, and prioritizing the tasks of the action plan effectively. Others include identification of the steps needed for the achievement of the goals, the use of numberings or lists, being able to effectively work under pressure, and completing work before deadlines. Finally, action planning includes having a contingency plan in place, (King, 2004).
All the steps in the action are crucial to the final result because they all have a role in the action plan. However, some steps are more crucial than others implying that they can be ranged from the least to the most important and vice versa. The most important component of the action plan is the identification of one’s objectives. The least important similarly is the use of lists in the course of the action plan, according to king, (2004).
There are several reasons why identification of objectives is arguably the most important part of the action plan. It makes those executing the plan to keep track of where they are at a particular point of the plan, where they want to be, how they will get there, and the actions to take. There are reasons why the use of lists is considered the least important part of the action plan. The basic one is that it doesn’t contribute much to the final action plan because it’s mainly a definition of the steps clearly taken (AceMyHW.com).
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Nah, S., & Dawodu, E. (2007). Establishing private health care facilities in developing countries a guide for medical entrepreneurs. Washington, D.C.: World Bank.